Governor challenges tax credits while protecting kids, elderly

Jay Nixon

In a halfhearted effort at tax credit reform, the Republican-led legislature last Thursday passed along a budget item that would end a tax credit provided to low-income elderly and disabled citizens who rent their homes. The money saved from that move would then fund First Steps, a program that provides services to children with disabilities.

That move effectively pitted the elderly against children, leaving the governor in a position to pick sides. If he vetoed the bill, he would be siding with the elderly. If he allowed it to go through, he would be siding with the children.

Instead, the governor balanced his stance on both feet and swung at the legislature, while embracing both age groups.

He vetoed the bill Tuesday, pointing out that it included no meaningful tax credit reform.

We agree. So far, the legislature has done almost nothing about concerns over runaway tax credits that cut into the general budget while sometimes failing to prove they result in economic benefits.

But the governor didn't take that action until he had firmly put those children and their families in his corner of the ring. Nixon began a campaign-style tour of the state, including Springfield, to speak out on behalf of the First Steps program.

He pointed out that his own proposed budget had included both the tax credit and the $20 million needed to fund the First Steps program, which offers a variety of services to families with children, from birth through age 3, who have disabilities or developmental delays.

At each stop he surrounded himself with mothers and children in the program to make it clear that he would not abandon them. "...First Steps must be funded now and funded in full," he said in Springfield - but not before saying he would not tolerate abandoning needy seniors, either.

Nixon made it clear that he views the legislature's move as a "ploy" to back him against the ropes. Instead, he did a lot of fancy footwork to turn that advantage around.

This is an unnecessary fight. Yes, we need to find ways to cut spending and balance our state budget. Yes, we need to support programs that benefit those who most need our help and support tax credits that work to spur our economy. And we need to restrict programs and tax credits that fail to meet those standards.

The legislature has until Friday to quit playing rope-a-dope and fix this.